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James Halpin
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Published: April 21, 2017

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DALLAS — Two area residents, including an 80-year-old man, are facing conspiracy charges after a months-long sting operation uncovered a scheme that earned them thousands of dollars selling tax-free cigarettes.

John Marshall Woodrosky, 80, of 15 Woodlawn Ave., Harveys Lake, and George McDaniels, of 144 W. Cemetery St., Ashley, are facing multiple felony counts of possessing and conspiring to possess unstamped cigarettes. Investigators allege the pair bought untaxed cigarettes from New York state Native American reservations and resold them in Luzerne and Columbia counties for huge profits — earning about $10,000 per trip.

According to the charges, the investigation into the operation began Aug. 7, when state police Cpl. Michael Reffeor saw a line forming at a black Chevrolet SUV parked in the lot of Kmart on U.S. Route 11. The trooper went to talk to Woodrosky, observing bags and cartons of cigarettes that Woodrosky said he was selling for $30 each — about 50 percent off the taxed cigarette price.

Troopers launched an undercover sting operation and bought 12 cartons and bags of untaxed cigarettes from Woodrosky over the next four months, according to a police affidavit. Police say they documented Woodrosky, who was previously investigated for illegal cigarette sales, making illegal sales in locations ranging from Pittston to Berwick.

The investigation revealed Woodrosky was traveling to the Sacajawea and Rez smoke shops on the Tonawanda Indian Reservation near Buffalo, where he was buying cigarettes for $20 per carton and $10 per bag, according to the affidavit.

Each trip, Woodrosky bought more than $10,000 worth of cigarettes, then drove the hundreds of cartons and bags back to the Wyoming Valley to sell them for huge mark-ups — $30 per carton and $23 per bag, according to police.

The sales covered the costs of the purchases plus about $10,000 in profit for each trip, police said.

During a search of Woodrosky’s home in December, troopers found more than $183,000 in cash — stuffed in kitchen cabinets, closets and in clothing — as well as more than 300 bags and cartons of untaxed cigarettes, police said.

Woodrosky admitted to selling untaxed cigarettes for about five years and said he used the proceeds to buy a Chevrolet Traverse and a Chevrolet Tahoe, and that his regular customers “call him all day long,” according to a police affidavit.

During a separate interview, McDaniels admitted accompanying Woodrosky on about 15 of the trips to buy cigarettes and that for helping drive on each trip he was compensated with four cartons of cigarettes, for a profit of about $280, police said.

Troopers this week charged Woodrosky in Columbia County with 17 felony counts, including dealing in the proceeds of illegal activity; while McDaniels was charged in Luzerne County with 10 felony counts of possessing and conspiring to possess unstamped cigarettes.

Magisterial District Judge James Tupper released McDaniels on $10,000 unsecured bail following an arraignment Thursday. In Columbia County, Magisterial District Judge Richard W. Knecht released Woodrosky on $50,000 unsecured bail.

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